Twitter and Omnicom Strike $230 Million Mobile Ad Deal

Omnicom Media Group announced a mobile-focused deal with Twitter on Tuesday, worth $230 million over the next two years.

The deal will integrate Omnicom’s programmatic ad buying unit Accuen with Twitter’s ad exchange MoPub, which it purchased for a reported $350 million in September. In addition to locking in ad rates and inventory access for Omnicom agencies, the arrangement will also give the holding company a “first look” at new ad units and opportunities being developed by the social network. Like many of these deals, it will include an element of “research,” the companies said.

“This is the first holding company agreement we’ve done on the mobile ad exchange side,” said Twitter’s president of global revenue, Adam Bain, adding, “It’s great for us because we’ll now have high-quality advertisers coming through the exchange.”

Twitter has struck similar partnerships with other holding companies over the past two years. Last April it signed one with Publicis-owned Starcom MediaVest Group worth a reported $200 million over two years, for example.

According to Mr. Bain, each of these deals is different, depending on what the agency wants from the social network. “Each one is unique. They’re rooted in the unique points of view these agencies bring,” he said, adding, “This one is unique because it focusses on the tech part of how ads will be delivered.”

At the moment, ads purchased programmatically from Twitter only show up across third-party sites in its MoPub network, but the social network plans to let marketers buy ads on its own site soon that way too.

“We haven’t made an announcement about opening up Twitter to programmatic buys, but it’s natural that we’ll do it,” Mr. Bain said. Based on this new relationship with Omnicom, it’s possible the agency group will be the first to do so.

“Our agreement with Twitter reflects what we look for in a media partnership – the opportunity to deliver first-to-market benefits that impact all aspects of all Omnicom clients’ digital investments, from content to placement to measurement,“ a statement from Omnicom read.

Twitter isn’t the only social network striking this type of deal, of course. Last week Facebook signed a multi-year deal with Publicis worth “hundreds of millions” of dollars. That arrangement is designed to more closely integrate the two companies’ data, the pair said.